Arithmetic - Quant/Math - CAT 2009

Question 4 the day: August 29, 2002
The question for the day is from the topic of Arithmetic.

Which amongst the following investments has the lowest return?
a. 7% Rs.100 shares at Rs.120
b. 8% Rs.10 shares at 13.50
c. 9% Rs.50 shares at Rs.54

(1)

a

(2)

b

(3)

c

(4)

a and c

Solution:

7% Rs.100 shares at Rs.120 – Income on Rs.120 = Rs. 7. Therefore, return =

8% Rs.10 shares at Rs.13.50 – Income of Rs.0.80 on Rs.13.50. Therefore, return =

9% Rs.50 shares at Rs.54 – Income of Rs.4.50 on Rs.54. Therefore, return =

From the available data we know that 9% Rs.50 share at Rs.54 is a better investment than 7% Rs.100 share at Rs.120. Hence, we need to compare between 7% Rs.100 share at Rs.120 and 8% Rs.10 share at Rs.13.50

and . is a better investment than . Therefore, the investment with the lowest return is a.